A SHORT four months after acquiring the majority shares in Southwestern University (SWU), Phinma Corp. (PHN) said it has disposed them to its education arm for P2.54 billion. Phinma Education Holdings Inc.—the company’s wholly owned subsidiary, which eventually will become the vehicle for raising funds in the future—bought its 21,331 shares at a par value of P119,165.09 apiece.
The stakes account for 70.47 percent of the total outstanding shares in the private academic institution. Primarily, Phinma Education funded the acquisition through long-term loans amounting to P2.3 billion—P1.4 billion from Rizal Commercial Banking Corp. and P900 million from China Banking Corp.
SWU offers graduate, tertiary, secondary and basic education in its locations in the Visayas and Mindanao regions.
It also operates a hospital and medical center, known as the Sacred Heart Hospital.
On April 22 PHN purchased 17,201 shares equivalent to 56.83 percent in SWU for P1.9 billion. Then in May and August this year it acquired 883 and 3,247 more shares for a total price of P101 million and P372 million, respectively, representing a 13.64-percent interest in the academic institution.
PHN is a publicly listed holding firm with various interests in education, steel products, housing, business-process outsourcing and energy sectors. Through Phinma Education, it holds significant equities in educational institutions, namely, Araullo University in Cabanatuan City, Nueva Ecija; Cagayan de Oro College Inc.; University of Pangasinan; University of Iloilo; and Career Academy Asia Inc.
With the addition of SWU, the enrollment of Phinma Education’s schools will increase by 10,000 students to 47,000 students and, eventually, will bolster the top and bottom lines. The Cebu location also extends its presence in one of the country’s major education hubs, expanding its physical reach and influence.
This investment even represents Phinma’s entry into the mid-income education market.
The company is said to be pushing the Aznar family-founded academic institution to move aggressively on the senior high-school market, in line with the Department of Education’s K to 12 initiative.